Question : The simple interest on a sum for five years is two-fifths of the sum. The rate of interest per annum is:
Option 1: 1%
Option 2: 8%
Option 3: 6%
Option 4: 4%
Correct Answer: 8%
Solution :
Time = 5 years
Let the principal be
Rate =
So, simple interest =
Simple interest =
⇒
⇒
⇒
Hence, the correct answer is 8%.
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